Interest rates already show reductions in the market, in line with the BCP’s monetary policy – MarketData

The Central Bank of Paraguay (BCP) today presented its Financial Indicators report, corresponding to October. In it, it can be noted that active interest rates have been reduced on average, going from 15% in September to 14.91% in October, lower than the 15.58% that had been registered in October of last year. for this indicator.

Regarding rates by type of loan, the greatest reduction has been noted in development loans, where the average has dropped from 11.4% to 11%. For its part, the rate for housing loans has been reduced from 10.28% to 10.14% between September and October, while the rates for consumer loans have remained practically the same.

For their part, passive interest rates, that is, those paid by the financial system to savers, have also decreased slightly on average, going from 4.8% in September to 4.73% in October of this year. As in the case of active rates, the current average is lower than that of October last year, when it was 4.88%.

This reduction in the average is mainly explained by the reduction in rates on Savings Deposit Certificates (CDA), which were reduced from 8.36% to 8.13% on the October average. Likewise, these figures are lower than those recorded in October of last year, when this instrument paid an average of 9.04% to depositors.

If you look at the portfolio in dollars, you can see that there was a slight reduction between September and October of this year, going from 8.29% to 8.20% on average, but the rates are still above the average for October of the year. last year, which was 7.28%. For their part, deposit rates in dollars have remained practically unchanged.

Miguel Mora, chief economist of the Central Bank, pointed out during the press conference that these rate reductions in guaraníes compared to last year are the result of the beginning of the normalization of the reference rate. It is worth remembering that since August of this year, the BCP has been reducing its reference interest rate, from the 8.75% it was at for almost a year to 8%.

“We see a downward trend in market lending rates, in line with the reduction we have made in the monetary policy rate. At the moment it would be 125 basis points since we began the normalization process, and that is seen in the market rates, both in the active rates and the passive rates of the financial system,” he said.